HQ 110986: Port Hueneme Vessel Repair Entry No. C27-0011756-0; GREEN WAVE V-36

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                            HQ 110986

                          July 9, 1990

VES-13-18-CO:R:P:C  110986 GV

CATEGORY:  Carriers

Chief, Technical Branch
Commercial Operations
Pacific Region
1 World Trade Center
Long Beach, California 90831

RE:  Port Hueneme Vessel Repair Entry No. C27-0011756-0;
     GREEN WAVE  V-36

Dear Sir:

     Your memorandum dated April 13, 1990, forwarded an
application for relief from duties assessed pursuant to 19 U.S.C.
1466.  You request that we review one item contained in the above
referenced entry.  Our findings are set forth below.

FACTS:

     The GREEN WAVE is a U.S.-flag vessel owned by Central Gulf
Lines, Inc. (Central Gulf) of New Orleans, Louisiana.  The vessel
had foreign repairs performed in September and November, 1989.
Subsequent to the completion of the repairs the subject vessel
arrived in the United States at Port Hueneme, California, on
December 28, 1989.  A vessel repair entry covering the work in
question was filed on January 3, 1990.

     Pursuant to an authorized extension of time until March 28,
1990, an application for relief, dated March 27, 1990, was timely
filed.  The specific charges for which relief is claimed are
those for the services of an engineer from the Canadian firm of
Krupp Mak Diesel Inc. who rode the vessel from Nordenham, West
Germany, to Gibraltar.  The applicant claims that these charges
should be nondutiable since the duties of the engineer "were to
take readings of the engine's performance, not to perform
repairs.  We had ordered these diagnostics to aid with our
planning."  (see the second and third paragraphs of the
application)  In support of this claim the applicant submitted
with the application an itemized invoice (Exhibit 1), and a
statement of activities (Exhibit 2).  In addition, by letter
                              - 2 -

dated March 29, 1990, and received by the San Francisco Vessel
Repair Liquidation Unit (VRLU) on April 2, 1990, the applicant
submitted a cost analysis spread sheet of duty and a service
report of the engineer.

ISSUE:

     Whether the foreign expenses for which the applicant seeks
relief are dutiable under 19 U.S.C. 1466.

LAW AND ANALYSIS:

     Title 19, United States Code, section 1466, provides in
pertinent part, for payment of duty in the amount of 50 percent
ad valorem on the cost of foreign repairs to vessels documented
under the laws of the United States to engage in foreign or
coastwise trade, or vessels intended to engage in such trade.

     Pursuant to section 4.14(d)(1)(ii), Customs Regulations,
the application for relief, with supporting evidence, shall be
filed within 60 days from the date of first arrival of the
vessel, unless Customs grants an extension.  Accordingly,
pursuant to the San Francisco VRLU's granting of the applicant's
request for an extension of time, the deadline for filing the
supporting evidence and application for this entry was March 28,
1990.  Any evidence submitted after that date will not be
considered in the liquidation of this entry.  Furthermore,
Central Gulf should be informed that absent Customs authorized
extensions of time, failure to submit an application for relief
with supporting evidence within the 60-day time period noted
above results in the entry being forwarded for immediate
liquidation.

     Upon reviewing the evidence submitted, it should be noted
that the statement of activities of the engineer (Exhibit 2) was
in German and not accompanied by an English translation that is
certified for accuracy by the translator as required by 19 CFR
4.14(d)(1)(iv).  As to the remaining evidence under
consideration, it appears that the engineer's activities
included more than just the mere taking of readings of the
engine's performance, but also work that was tantamount to
maintenance of the engine as well as making recommendations as to
the repairs necessary for the engine's operation.  Accordingly,
in the absence of evidence to the contrary, the services of the
engineer constitute dutiable charges under section 1466.  The
applicant's request is therefore denied and the entry should be
liquidated immediately with the sending of a bill when
appropriate.

                              - 3 -

HOLDING:

     The foreign costs discussed above for which the applicant
seeks relief are dutiable under 19 U.S.C. 1466.

                                   Sincerely,




                                   B. James Fritz
                                   Chief
                                   Carrier Rulings Branch


cc:  N.Y. VRLU
     N.O. VRLU